London-based Shard Capital Partners LLP provides further evidence of the continuing ability of UK-based financial services firms to grow, if not prosper, since the global financial crisis of 2007-2009.
Founded by James Lewis and Patrick Dean in December 2010 as a fixed-income brokerage Shard Capital Partners has grown and diversified significantly into a fully fledged financial services company offering asset management, corporate advisory and finance, corporate and personal broking and wealth management services.
The firm has grown primarily by attracting professionals that share the entrepreneurial mindsets of the two founders. But Shard also made a significant acquisition in April 2015 when it purchased the fixed income business of ACPI.
Institutional pan-European brokerage business remains the firm’s principal revenue driver and profits source. But other income streams, not least its asset management activities, are assuming greater importance and, in its most recent members report for the year to 31 March 2016, it anticipated further progress in this respect through the launch of new investment fund offerings.
Shard reported £19.35 million of revenues for the year ending March 2016 in its most recent annual report and accounts, a 42.22 percent on the £11.18 million reported a year earlier. Members’ profits came in at £14.18 million, a 31.49 percent increase on the £10.80 million reported in the previous year.
The 32 partners employed at the end of March 2016 includes a number of individuals some of whom may be well-known to readers of thewealthnet, not least Chris Woods and Mike Hollings, who oversee a growing structured products business.
Both formed part of a successful investment management team as head of structured investments and chief investment officer respectively that featured prominently in the PAM Awards around 10 years ago. They then spent time at Matrix Investment Management and Rathbones.
Mr Woods joined Shard in 2013 to establish a structured products business. Mr Hollings joined a year later after launching a multi-strategy fund at Kola Capital 2012.
A four-person team currently oversees Shard Capital’s wealth management operations.
This consists of Simon Legge, who worked at a number of institutions including Barclays, Merrill Lynch and UBS before joining Shard and Maitane Fernandez de Meniola, who also worked at Merrill Lynch and Julius Baer during a 20 year career as an economist and wealth manager.
In April 2015 Simon McElhinney and Ross Legion joined Shard from Killik & Co., another London-based firm. Both have extensive wealth management experience. Mr McElhinney spent 15 years at Killick and Mr Legion eight years.
Leveraging the other component parts of Shard Capital Partners, not least its broking and corporate advisory and finance activities, should provide opportunities for growing its wealth management operations going forward.
Shard can also offer other capabilities, not least a successful fixed-income focused asset management business that builds on the ACPI acquisition in 2015. Now rebadged as Rubrics Asset Management with Steven O’Hanlon as its chief investment officer, the firm manages UCITs that invest in both emerging markets and global credit.
At the end of March 2016 Shard had around £0.8 million of assets under management and administration, of which the fund management business accounted for £518.8 million.